'Call of duty': With Sergio Ermotti, Switzerland gets a cost-cutting local to restore its reputation
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Incoming UBS CEO Sergio Ermotti on Wednesday said his return to the helm was «a call of duty,» as the Swiss veteran takes on the task of restoring order to the country's battered financial reputation.
UBS announced on Wednesday that the former CEO would replace Ralph Hamers from April 5, as the Swiss bank undertakes the mammoth task of integrating fallen rival Credit Suisse into its business.
In a press conference, UBS Chairman Colm Kelleher lauded Hamers' tenure, highlighting the company's «unprecedented success despite a challenging environment» under the Dutchman's tutelage, and his instrumental role in delivering the Credit Suisse deal.
UBS has posted two consecutive years of record profits and returns to shareholders under Hamers, but Kelleher said the acquisition of Credit Suisse «created a new reality» and «imposes new priorities» on the board.
Kelleher said the board decided that Ermotti's experience in picking UBS up from the canvas after the 2008 financial crisis rendered him uniquely qualified to lead the new combined entity through what promises to be a challenging and drawn out integration.
«In particular, he built financial strength and improved resilience by putting the firm's leading global wealth management business and Swiss universal bank at its core,» Kelleher said of Ermotti's tenure as CEO from November 2011 to October 2020.
«Sergio swiftly transformed the investment bank by cutting its footprint, and achieved a profound culture change within the bank which allowed it to regain the trust of clients and other stakeholders while restoring people's pride in working for UBS.»
He added that this, combined with Ermotti's «deep understanding of the financial service industry in Switzerland
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